In a press release issued today, Indian multinational information technology (IT) service and consulting company Tata Consultancy Services (TCS) announced the launch of ‘Quartz Smart Solution for Crypto Services’ to enable institutional investors to diversify their portfolio into cryptocurrencies and digital assets.
A First in India
Despite the in limbo nature of the country’s cryptocurrency industry, India’s largest IT firm, TCS, today launched its institutional-grade cryptocurrency trading service dubbed Quartz Smart Solution for Crypto Services. The offering allows banks and investment firms to provide secure and seamless digital currency trading to their clientele.
Founded in 1968, TCS is the largest IT firm in India employing more than 440,000 individuals across the globe. The company reported a revenue of $22 billion for FY20 and disbursed more than $5 billion as dividends to shareholders.
According to the press release, the solution supports multiple cryptocurrencies and stablecoins to provide enough flexibility to clients to aid them in deciding their trading and investment strategies. For the uninitiated, stablecoins are digital currencies typically pegged to fiat or a basket of fiat currencies to mitigate the notorious price volatility associated with cryptocurrencies. Notably, the service enables banks and other financial institutions to leverage the benefits associated with digital payments, including minuscule transaction costs and instant access to liquidity.
The solution places high importance on the security of digital assets. TCS says the Quartz Smart Solution comes integrated with a best-in-class hardware security module that supports cryptographic signing of each transaction to offer the highest level of authenticity and security to the clients.
In addition to the hardware security module, the solution offers a wide array of robust security mechanisms, including multi-signature wallets, blockchain forensic checks, auto reconciliation, compliance alerts, exchange and over-the-counter (OTC) desk connectivity, and audit capabilities.
Commenting on the development, R Vivekanand, Global Head, Quartz, TCS, said:
“Cryptocurrencies, digital fiat currencies and digital assets are poised to become viable alternate avenues for investments, hedging and portfolio diversification. Progressive financial institutions are looking to provide these options to their clientele. We are excited to offer them our robust, secure and scalable solution for trading, storing and transfer of these assets. We believe Quartz is well ahead of the curve in providing such a solution that allows customers to transact in multiple cryptocurrencies and digital assets, backed by best-in-class security features.”
TCS Unfazed by the Regulatory Uncertainty
Unclear regulations and frequent Ponzi schemes have unfortunately marred the public image of cryptocurrencies in India.
Despite the Supreme Court of India’s watershed judgment in March this year that quashed the Reserve Bank of India’s (RBI) two-year-old ban on cryptocurrencies, banks, and financial institutions in the country have been reluctant to extend services to crypto businesses.
In June, reports emerged stating that the Indian government is mulling banning cryptocurrencies again. However, the regulatory uncertainty regarding cryptocurrencies seems to have failed to deter Indian crypto enthusiasts from participating in the industry as evident from the exponential rise in crypto trading volume and the number of new users registered by local cryptocurrency exchanges.
The foray of an IT juggernaut such as TCS into the industry is a step toward the right direction in that it brings a great degree of legitimacy to nascent space. With an increasing number of firms joining in the bandwagon, India could hope to catch up with the more advanced crypto economies in Asia in the near-term.